Daily Market Commentary
The weakness of the US Dollar remains the centre theme surrounding markets, allowing further gains in the EUR and the GBP. The EUR topped 1.1300, while the GBP broke back above 1.3400. The US Dollar weakness is a result of concerns surrounding the US economy and US growth. Moody's downgraded the US credit rating and economic data has been weak.
The RBA rate cut hammered the AUD, which crashed below 0.6400, following the 25-basis point rate cut on Tuesday. The overall weakness in the reserve currency has allowed a recovery in the AUD, jumping back above 0.6450. The NZD has consolidated above 0.5900, ahead of the budget, but these are no longer market movers.
Dates & Headline
19/5 NZ Business PSI, NZ PPI, UK House Price Index, China House Price Index, China Industrial Production/Retail Sales, EU CPI
20/5 G7 Meeting, PBoC IRD, RBA IRD, German PPI, EU Current Account, Canada CPI
21/5 G7 Meeting, NZ Trade Exports/Imports, Japan Trade Exports/Imports, Japan CPI
22/5 G7 Meeting, Australia/Japan Services/Manufacturing/Composite PMI, NZ Budget, NZ Credit Card Spending, UK/France/German/EU Services/Manufacturing/Composite PMI, ECB Minutes, Chicago Fed National Activity Index, US Weekly Jobless Claims, US Services/Manufacturing/Composite PMI, EU Consumer Confidence, US Existing Home Sales, Kansas City Fed Manufacturing Index
23/5 NZ Retail Sales, UK Consumer Confidence, Japan CPI, German GDP, UK Retail Sales, France Consumer Confidence, US New Home Sales
Paul Bettany I Collinson Forex Limited Collinson & Co.
Private Banking I Mobile +64 0406-744-923
Countries: NZ 0800 338 838 I AU 1800 143 415 I UK 0800 028 5834 I US 1888 625 7833